Buffett's Insurance Empire Has an AI Plan--And It's Nothing Like Wall Street's
Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) isn't chasing the AI hype trainyet. But when it comes, they'll be ready. Speaking candidly at the shareholder meeting, Vice Chairman Ajit Jain didn't mince words. He called artificial intelligence a real game changer for insurancetransforming how risks are priced, policies sold, and claims processed. Still, true to Berkshire DNA, Jain made it clear they're in no rush to throw money at the trend. We are not very good in terms of being the fastest or the first mover, he said. Our approach is more to wait and see until the opportunity crystallizes.
That doesn't mean they're asleep at the wheel. Jain noted Berkshire's insurance units are already experimenting with AI in small waysbut no big checks have been written yet. The reason? Caution. People end up spending enormous amounts of money trying to chase the next new fashionable thing, he warned, hinting at the market's tendency to leap before looking. For Berkshire, the bar is higher: a clear upside, manageable risk, and a long-term edge.
But make no mistakewhen the right moment comes, they'll strike. My guess is we will be in a state of readiness, Jain said, and should that opportunity pop up, we'll be in a state where we'll jump in promptly. Translation? They're not betting the farm today. But if the math makes sense tomorrow, Berkshire could become one of AI's most disciplined and decisive players.
This article first appeared on GuruFocus.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
44 minutes ago
- Yahoo
Palantir Stock vs. Taiwan Semiconductor Stock: Wall Street Says Buy One and Sell the Other
Billionaire Stanley Druckenmiller of the Duquesne Family Office and Cathie Wood of Ark Invest have both been selling Palantir Technologies stock and buying shares in Taiwan Semi lately. Palantir stock has experienced outsized momentum throughout 2025, potentially making now a smart time to take gains. Conversely, TSMC has experienced notable valuation compression despite robust long-term tailwinds supported by ongoing AI infrastructure spend. 10 stocks we like better than Palantir Technologies › Following the end of each calendar quarter, institutional investors are required by the Securities and Exchange Commission (SEC) to file a Form 13F. A 13F serves as a public ledger, breaking down which stocks the "smart money" on Wall Street bought and sold during the most recent quarter. For the last few years, institutional investors haven't been able to stop buying artificial intelligence (AI) stocks. Chief among popular buys for most of the last two years are "Magnificent Seven" darling Nvidia and data mining specialist Palantir Technologies (NASDAQ: PLTR). However, while combing through some recent filings and trading data, it would appear that some of Wall Street's most closely followed personalities are dumping Palantir stock and redeploying their gains into another AI semiconductor stock -- Taiwan Semiconductor Manufacturing (NYSE: TSM). I'll detail some moves made by billionaire money manager Stanley Druckenmiller of the Duquesne Family Office and Ark Invest founder Cathie Wood as it relates to swapping Palantir for TSMC. Let's dig into why selling Palantir stock and buying shares of TSMC might make sense for growth investors right now. It's no secret that 2025 has been a choppy year in the stock market. The S&P 500 and Nasdaq Composite have each exhibited pronounced volatility, thanks in large part to an overwhelming cloud of uncertainty -- from tariff negotiations, mixed economic data, and guessing what policies the Federal Reserve might institute next. Nevertheless, it seems as if nothing can stand in the way of Palantir stock's parabolic run. Let's start with Cathie Wood's recent trading activity. While Palantir remains the fifth-largest holding across Ark Invest's exchange-traded funds (ETFs), the firm has been trimming its exposure to Palantir over the last month. Of note, some of these trades were required by specific regulations per the Internal Revenue Code. Essentially, the gains in Ark's Palantir position were so high that the stock had become an abnormally large position, and the rise in share price triggered a sale. What is unique, however, is that Ark continued reducing its exposure to Palantir -- even after the company delivered a monster earnings report earlier this month. Druckenmiller's activity in Palantir stock differs slightly from Wood's. Per Duquesne Family Office's Q1 13F, the firm no longer has any exposure to Palantir -- having sold its remaining 41,710 shares during the quarter. I went back and took a look at Duquesne's exposure to Palantir since the company went public back in 2020. It would appear that this is not the first time since Druckenmiller and his team owned the red-hot AI stock, only to dump it later on. Need I remind you, Wood has done this before, too. At a price-to-sales (P/S) ratio of nearly 100, Palantir has become a historically pricey stock among a cohort of software businesses that generally fetch premium valuations as it is. The trading patterns from Wood and Druckenmiller lead me to think that each investor may be exercising a similar strategy: taking profits off the table during periods of pronounced momentum and being cognizant of an overstretched valuation. During the first quarter, the Duquesne Family Office purchased 491,265 shares of Taiwan Semi stock -- increasing its stake by 457%. In addition, Wood appears to be quietly carving out more exposure to semiconductor stocks across Ark's portfolio, too. Over the last few months, Ark has gone back to buying shares of Nvidia and Advanced Micro Devices, and more recently, just scooped up TSMC stock. From a macro standpoint, buying chip stocks looks like a savvy bet right now. Hyperscalers such as Amazon, Alphabet, and Microsoft, in combination with Meta Platforms and Apple, have collectively committed hundreds of billions of dollars for AI-related capital expenditures (capex) over the next several years. In addition, Oracle, OpenAI, and SoftBank are leading the charge for Project Stargate -- a $500 billion AI infrastructure initiative. Secular tailwinds fueling AI infrastructure, particularly a rising need for GPUs and integrated network equipment, bode well for Taiwan Semi's long-term prospects. Even so, shares of Taiwan Semi have faced enormous pressure as of late -- likely due to ongoing tensions between the U.S. and China as it relates to trade. At a forward price-to-earnings (P/E) multiple of just 21.3, TSMC appears to have exhibited some pronounced valuation compression during the first quarter. In all fairness, I personally remain bullish on both Palantir and Taiwan Semi -- as each have compelling long-run tailwinds underscored by the AI movement. But right now, I think Palantir's valuation is quite lofty and it's increasingly becoming difficult to justify. On the other hand, I think TSMC stock is reasonably valued and looks like a great buy right now. My thinking is Druckenmiller and Wood redeployed their gains from high-flying growth stocks such as Palantir and bought the dip in Taiwan Semi stock. With that in mind, I think investors might want to consider doing the same and reduce some exposure to Palantir and reinvest their gains elsewhere -- and Taiwan Semi looks like a great position for that. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Cloudflare, CrowdStrike, Datadog, Meta Platforms, Microsoft, MongoDB, Nvidia, Oracle, Palantir Technologies, ServiceNow, Snowflake, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Palantir Stock vs. Taiwan Semiconductor Stock: Wall Street Says Buy One and Sell the Other was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
an hour ago
- Business Wire
RGA Announces 150 Billion JPY Coinsurance Transaction with The Dai-ichi Life Insurance Company
TOKYO--(BUSINESS WIRE)-- Reinsurance Group of America, Incorporated (NYSE: RGA), a leading global life and health reinsurer, today announced that it reached an agreement with The Dai-ichi Life Insurance Company, Limited (Dai-ichi) for an RGA subsidiary to reinsure 150 billion JPY of statutory reserves through coinsurance. This agreement reinforces RGA's commitment to providing leading reinsurance solutions in the Asian insurance market, empowering insurers with creative and tailored offerings that optimize capital and enhance risk management capabilities. Share 'Building on our successful collaboration with Dai-ichi since 2020, we are thrilled to announce this latest transaction in our continued partnership,' said Gaston Nossiter, Senior Vice President, Japan; Asia Pacific Financial Solutions, RGA. 'This agreement reinforces RGA's commitment to providing leading reinsurance solutions in the Asian insurance market, empowering insurers with creative and tailored offerings that optimize capital and enhance risk management capabilities.' RGA, a worldwide leader in reinsurance, pioneered asset-intensive solutions as financial optimization tools. Since executing its first such transaction in Asia in 1996, RGA has successfully implemented numerous coinsurance deals across the Asia Pacific region, delivering lasting value to clients and consumers across diverse markets. The effective date of the transaction is March 31, 2025. About RGA Reinsurance Group of America, Incorporated (NYSE: RGA) is a global industry leader specializing in life and health reinsurance and financial solutions that help clients effectively manage risk and optimize capital. Founded in 1973, RGA is today one of the world's largest and most respected reinsurers and remains guided by a powerful purpose: to make financial protection accessible to all. As a global capabilities and solutions leader, RGA empowers partners through bold innovation, relentless execution, and dedicated client focus — all directed toward creating sustainable long-term value. RGA has approximately $3.9 trillion of life reinsurance in force and assets of $118.7 billion as of December 31, 2024. To learn more about RGA and its businesses, please visit or follow RGA on LinkedIn and Facebook. Investors can learn more at
Yahoo
an hour ago
- Yahoo
RGA Announces 150 Billion JPY Coinsurance Transaction with The Dai-ichi Life Insurance Company
TOKYO, June 02, 2025--(BUSINESS WIRE)--Reinsurance Group of America, Incorporated (NYSE: RGA), a leading global life and health reinsurer, today announced that it reached an agreement with The Dai-ichi Life Insurance Company, Limited (Dai-ichi) for an RGA subsidiary to reinsure 150 billion JPY of statutory reserves through coinsurance. "Building on our successful collaboration with Dai-ichi since 2020, we are thrilled to announce this latest transaction in our continued partnership," said Gaston Nossiter, Senior Vice President, Japan; Asia Pacific Financial Solutions, RGA. "This agreement reinforces RGA's commitment to providing leading reinsurance solutions in the Asian insurance market, empowering insurers with creative and tailored offerings that optimize capital and enhance risk management capabilities." RGA, a worldwide leader in reinsurance, pioneered asset-intensive solutions as financial optimization tools. Since executing its first such transaction in Asia in 1996, RGA has successfully implemented numerous coinsurance deals across the Asia Pacific region, delivering lasting value to clients and consumers across diverse markets. The effective date of the transaction is March 31, 2025. About RGA Reinsurance Group of America, Incorporated (NYSE: RGA) is a global industry leader specializing in life and health reinsurance and financial solutions that help clients effectively manage risk and optimize capital. Founded in 1973, RGA is today one of the world's largest and most respected reinsurers and remains guided by a powerful purpose: to make financial protection accessible to all. As a global capabilities and solutions leader, RGA empowers partners through bold innovation, relentless execution, and dedicated client focus — all directed toward creating sustainable long-term value. RGA has approximately $3.9 trillion of life reinsurance in force and assets of $118.7 billion as of December 31, 2024. To learn more about RGA and its businesses, please visit or follow RGA on LinkedIn and Facebook. Investors can learn more at View source version on Contacts FOR MORE INFORMATION: Jeff HopsonSenior Vice President, Investor Relations636-736-2068jhopson@ Lynn PhillipsVice President, Corporate Communications636-736-2351lphillips@ Lizzie CurryExecutive Director, Public Melden Sie sich an, um Ihr Portfolio aufzurufen.
